Fed's Lacker sees rate rise before late 2014

WilliamL. Watts

FRANKFURT (MarketWatch) -- Richmond Federal Reserve Bank President Jeffrey Lacker on Friday said he dissented from the Federal Reserve's announcement earlier this week that it intends to keep interest rates near zero until late 2014 because he expects economic activity to prompt an earlier rate rise. "I dissented because I do not believe economic conditions are likely to warrant an exceptionally low federal funds rate for so long," Lacker said in a statement posted on the Richmond Fed website. "I expect that as economic expansion continues, even if only at a moderate pace, the federal funds rate will need to rise in order to prevent the emergence of inflationary pressures. This increase in interest rates is likely to be necessary before late 2014," he said. Lacker was the only member of the Federal Open Market Committee to vote against the Fed policy action, citing a desire to omit the reference to the time period.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.